Bank of America, N.A. Extends Conditional Waiver to Comdial Corporation.Business Wire CHARLOTTESVILLE, Va.--(BUSINESS WIRE)--October 5, 2000 Comdial Corporation (the "Company") (Nasdaq: CMDL CMDL Climate Monitoring and Diagnostics Laboratory CMDL Common Mission Data Loader ) and Bank of America
Bank of America (NYSE: BAC TYO: 8648 ) is the largest commercial bank in the United States in terms of deposits, and the largest company of its kind in the world. , N.A. (the "Bank") finalized a letter whereby the Bank agreed to waive certain defaults by the Company of financial covenants contained in its Credit Agreement with the Bank, dated October 22, 1998, subject to the Company's agreement to certain terms and conditions set forth in such letter (the "Conditional Waiver"). The terms and conditions include, among other things, the Company's agreement to three modifications to the Credit Agreement. First, the revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. commitment was amended to be forty million dollars. Second, the interest rate on the Note was amended to be the LIBOR LIBOR See: London Interbank Offered Rate LIBOR See London interbank offered rate (LIBOR). Daily Floating Rate plus three percent per year. The Bank reserved the right to increase this rate to the default rate provided in the Credit Agreement if the Conditional Waiver is terminated for any reason. Finally, the revolving credit termination date termination date, n See expiration date. was amended to occur the earlier of March 31, 2002 or the date on which the revolving credit commitment is terminated pursuant to certain provisions of the Credit Agreement. The Company also agreed in the Conditional Waiver that, on or before November 3, 2000, it would execute an amended and restated credit agreement that would contain terms and conditions substantially in accordance with the Company's agreement in principle to restructure the Credit Agreement, as previously announced. About Comdial Comdial is a provider of integrated communications solutions. The Company's broad product line includes business communications, hospitality, assisted living as·sist·ed living n. A living arrangement in which people with special needs, especially older people with disabilities, reside in a facility that provides help with everyday tasks such as bathing, dressing, and taking medication. , real estate, and call center solutions. For more information about Comdial and its products, please visit their web site at www.comdial.com. |
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